The fire at Bahria Shopping Plaza of Shah Alam Market in Mochi gate area had injured 20 people and spread to other aging buildings, increased risk of more damage on Monday.
Several people were stuck under the debris of a collapsed part of the building.
Rescue vehicles from all over the town were called at the scene.
DCO Lahore Ahad Cheema and Commissioner Nadeem Hasan Asif also visited the spot. They said that it was a difficult task to control the fire because the densely populated area had aging buildings and narrow streets.